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Ports Must be Optimized to Handle Current and Future Volumes In many ways, the historic congestion of 2021 was a harbinger for the future. The Journal of Commerce has reported that terminals in the San Pedro Bay Port Complex – the nation's largest – are on pace to reach capacity of 23-25 million TEUs as early as 2028. That is a stunning prediction for a single port complex that handles upwards of 40% of the nation's containerized Asian imports. West Coast ports have tremendous advantages, including proximity to Asia, terminal size, connectivity to the national supply chain, and a tremendous skilled workforce. Yet despite these strengths, West Coast ports remain focused on the need to densify terminals to enhance capacity to meet the challenges on the horizon. Synchronizing with All Links in the Supply Chain is Vital Rising imports and the intermodal challenges of 2021 highlighted just how interconnected the West Coast ports are with the U.S. and global supply chains. Cargo stacked up in the yards because containers had nowhere to go. Widespread shortages of truck drivers, chassis and warehouse space drove backups all the way to the marine terminals, fueling delays, shortages, and price spikes nationwide. Looking to the future, economists and logistics experts envision a world where all links in the supply chain operate more efficiently, including similar hours of operation, increased reliance on automated operations, and more widespread information sharing. WHAT SUPPLY CHAIN CONGESTION MEANS FOR THE FUTURE OF WEST COAST PORTS West Coast ports will remain a powerful jobs creator so long as cargo volumes stay strong. A skilled, safe, and efficient ILWU workforce will be fundamental to that future. 14 14 2021 ANNUAL REPORT